Why It's Time to Sell the Euro
With all the tumult in the forex market today, why trade the euro? Here's your reason.
What with the Australian dollar sliding on a disappointing employment report and central banks taking all kinds of expected and unexpected steps, plenty of traders are looking for trading opportunities outside of Europe.
Not Todd Gordon, co-head of research and trading at Aspen Trading Group.
"Right now we are approaching some significant levels" on the common currency, he told CNBC's Simon Hobbs. And for investors looking to trade the risk-off mood, "euro right now is the best respondent to this risk off trade."
Gordon argues that central banks from the Federal Reserve to the Bank of Japan are "fumbling" instead of really dealing with an apparent economic slowdown. "They need to start acting," he says. "I think that without central bank support, the market's going to continue to fall, and the euro's your best trade here."
That would be a euro short, of course. Gordon wants to sell the euro against the dollar, entering the trade at 1.2150 with a stop at 1.2300 and a target of 1.1850, which he says is close to fair value.
You can watch the discussion on the video clip.
iMULTI CURRENCIES v The Dollar
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